- CoreWeave announced a $1.5 bond sale plan to raise money to pay down debt.
- This comes in addition to a $2 billion debt offering plan announced in May.
- CoreWeave’s stock has more than tripled in size since its March debut on the Nasdaq.
CoreWeave
stock rose more than 1% after the renter of
artificial intelligence
data centers said it plans to sell $1.5 billion worth of bonds.
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The company said in a
release
that the notes, due in 2031, will use the capital for general purposes, such as paying off debt.
In May, the company announced a
$2 billion debt offering plan
that sent shares soaring 19%. At the time, CNBC confirmed that the debt was five times oversubscribed. Last week, shares rallied after the company announced a
$6 billion AI data center project i
n Pennsylvania.
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CoreWeave, whose biggest clients include
Nvidia
and
Microsoft
, has more than tripled in share price since its
March debut
on the Nasdaq.
In its IPO prospectus filing, CoreWeave said that it was “one of the largest private debt financings in history and signals the confidence that debt investors have in funding our company to build and scale the next generation AI cloud.”
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Some investors have raised concerns about the company’s debt and the sustainability of demand for its products. In May, CEO Michael Intrator
defended
CoreWeave’s spending plans and said it is meeting major client “demand signals.”
WATCH:
CoreWeave CEO Intrator: $6 billion AI data center investment shows depth of demand for our services
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